Myer has several living wage reviews underway, in addition to a regular factory audit program.
The department store’s manufacturing practices are under the spotlight, following praise on its progress by Oxfam.
In a statement to Ragtrader, a Myer spokesperson said it is committed to supply chain transparency.
“We know how important ethical sourcing is to Myer customers and team members and that is why we continue to deliver against, progress and improve our established sourcing program.
“This includes outlining our ongoing work in this area with our commitment to a living wage and factory information, ensuring an even more transparent supply chain.”
A closer look at the department store’s sustainability program reveals several reviews already underway.
According to Myer's ethical sourcing documentation, the current audit program assesses and asks factories to provide a living wage calculation.
Myer will monitor these as part of a living wage tracker, with analysis of any wage gaps in factories to be completed by September 2023.
“We will consult with factories where a living wage has been identified and share learnings with other factories to assist them in paying a living wage.
“Our research will also be used to improve our understanding and how we can help mitigate some of challenges associated with paying a living wage.”
Myer buyers will also explore options to separate labour costs in the overall purchase price - to ensure wage standards - with a review to be completed by December 2023.
Myer listed several challenges in determining living wages, including no clear benchmark to measure what constitutes a living wage in each region, city, province or country that it sources or manufactures goods.
Some of the hurdles with establishing a living wage include restrictions on freedom of association and collective bargaining laws and mechanisms in some countries that fundamentally limit the ability of a worker to organise advocate and negotiate fair and sustainable wage increases.
Other challenges include benchmark due to location, change in economic conditions and foreign exchange movements, taxation, commodity cost fluctuations, property cost movements, changes to government policies, and petrol and transportation cost variations.
“In the absence of a single global methodology to calculate living wage, we reference the benchmarks set out by the Anker Methodology where available, and wageindicator.org as an additional resource,” Myer's ethical sourcing page noted.
Myer directly sources products from over 320 suppliers across 15 countries for its private label brands, with the majority located across China, India, Bangladesh and Vietnam.
During FY21, Myer reviewed audits from 275 suppliers (423 factories) within its private label network.
According to its annual report, the review identified no zero tolerance issues and 54 high risk issues, which primarily related to excessive overtime hours.
It is understood suppliers with high risk issues have co-operated with remediation actions.